GST Registration Cancellation Revoked On Payment of Dues : Delay in Revocation Application Condoned
Summary in Key Points:
- Issue: Should the delay in filing the application for revocation of GST registration cancellation be condoned?
- Facts: The assessee’s registration was cancelled. There was a delay in filing the revocation application. The assessee expressed readiness to pay all outstanding dues (tax, interest, late fees, penalties) for the acceptance of their return forms.
- Decision: Citing the Mohanty Enterprises case, the court condoned the delay in invoking the proviso to Rule 23 of the OGST Rules. Subject to the assessee depositing all outstanding dues and complying with other formalities, the revocation application was to be considered according to the law.
Important Note: This decision follows the precedent set in Mohanty Enterprises, demonstrating a consistent approach towards condoning delays in revocation applications when the assessee is willing to rectify their non-compliance by paying all dues. It reinforces the principle that the focus is on ensuring tax compliance and revenue collection, rather than strictly adhering to procedural timelines, particularly when the assessee demonstrates good faith and willingness to cooperate.
HIGH COURT OF ORISSA
Bikash Chandra Nayak
v.
Chief Commissioner, CGST, Central Excise and Customs
Arindam Sinha and M.S. Sahoo, JJ.
W.P.(C) No. 31492 of 2024
DECEMBER 16, 2024
S.S. Padhy, Adv. for the Petitioner. A. Kedia, Jr. Standing Counsel for the Respondent.
ORDER
1. Mr. Padhy, learned advocate appears on behalf of petitioner and submits, under challenge is show cause notice dated 6th February, 2024 followed by order dated 23rd April, 2024 cancelling his client’s registration under Central Goods and Services Tax Act, 2017. He submits, his client is ready and willing to pay the tax, interest, late fee, penalty and any other sum required to be paid for the return form of his client to be accepted by the department. He relies on order dated 16th November, 2022 of coordinate Bench in W.P.(C) no.30374 of 2022 (M/s. Mohanty Enterprises v. Commissioner, CT & GST, Odisha, Cuttack and others). He submits, his client’s claim to relief including prayer for condonation of delay is covered by said order.
2. Mr. Kedia, learned advocate, Junior Standing Counsel appears on behalf of the department.
3. We reproduce below paragraph-2 from said order in M/s. Mohanty Enterprises (supra).
“2. In that view of the matter, the delay in Petitioner’s invoking the proviso to Rule 23 of the Odisha Goods and Services Tax Rules (OGST Rules) is condoned and it is directed that subject to the Petitioner depositing all the taxes, interest, late fee, penalty etc., due and complying with other formalities, the Petitioner’s application for revocation will be considered in accordance with law.”
Likewise direction is made in this writ petition. Petitioner gets the relief in the interest of revenue.
4. The writ petition is disposed of.